On 23 September at the UN Climate Action Summit in New York, ICLEI launched the 2019 Transformative Actions Program (TAP) call for applications. By actively seeking transformative climate projects, the TAP supports local and regional governments to develop concepts into low risk, high feasibility, high impact sustainable infrastructure projects.
The issue: a shortage of bankable projects
Project preparation is a key instrument for closing the current gap between the financial investments needed to achieve the goals of the Paris Agreement and what is actually invested in local projects.
While climate projects will need USD 480 billion in additional funding to meet the goal of the Paris Agreement, this gap is not due to a lack of interested investors. Counterintuitively, funds are available and investors are ready: the shortage is of bankable projects, as pointed out by a report authored by the Cities Climate Finance Leadership Alliance (CCFLA).
A “bankable” project is not just a “profitable” project. It is a project that quantifies the projected positive outcomes, such as social or environmental benefits, and has clear mechanisms for implementation and evaluation. This is important even for attracting charitable investors who wish to know exactly how much net good they are accomplishing with the money they are putting in.
Close the gap, join the TAP
The TAP therefore strives to help projects improve their bankability by increasing their visibility to potential investors, connecting them to project preparation facilities, or helping them connect with specifics tools or services that can increase the maturity of their proposed concept.
Led by ICLEI, the TAP is based on partnerships that connect the goals of diverse stakeholders into one coherent value chain for developing robust, transformative and bankable projects that will accelerate low-to-no emission and climate-resilient development. Since the first call announced in 2015, more than 20 TAP projects were successfully financed and implemented, while several others were connected to financial institutions and partners, receiving global attention at events. As of September 2019, the TAP pipeline has 44 projects with an identified investment’s need of 2.3 billion euro.
The most recent call for applications was announced at the UN Climate Action Summit on 23 September 2019 and is open until 30 November, 2019. Local and regional governments interested in applying to the TAP can learn more at tap-potential.org/.